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St. George job growth is No. 1 in the nation

By Nancy Perkins
Deseret Morning News
ST. GEORGE — Washington County's largest city continues to generate new jobs, beating out hundreds of other cities nationwide with a higher percentage in its job growth rate, according to a report issued by the U.S. Department of Labor. "I'm absolutely convinced if you have a pulse and you're not on drugs, you're a hot commodity," said Washington County economic development director Scott Hirschi. "I haven't talked to a single business that's not having a fair amount of trouble attracting employees and retaining them."
According to the April 2006 report, the largest over-the-year percentage increase in employment was reported in St. George at 8.5 percent. The increase in nonfarm payroll employment from April over April a year earlier was not seasonally adjusted and included reports from 467 metropolitan areas across the nation.
Of those metropolitan areas, 308 reported year-over increases, 49 recorded decreases and 10 had no change. The national unemployment rate in April was 4.5 percent, down from 4.9 percent a year earlier, according to the national report.
Utah's unemployment rate in April was 3.5 percent, with a 4.2 percent employment growth, according to a May 16 Department of Workforce Services news release.
DWS senior economist Mark Knold noted in the release that "the only groups having trouble in the current economic environment are some aspects of the business community who are not finding an abundant supply of skilled labor."
Utah southwest regional economist Lecia Parks Langston said the county's unemployment rate continues to drop, slipping below 3.1 percent in December to 2.7 percent in April.
That kind of job growth makes for a very tight labor market and is placing "upward pressure on wages" in Washington County, she said.
Hirschi said Washington County's low unemployment rate poses a significant challenge for current and prospective employers.
"I wouldn't be surprised if this didn't slow some expansion plans of existing businesses, but it hasn't been a huge problem (recruiting new clients) for me," he said. "It has certainly raised the eyebrows of my clients, though."
Employers are finding it not only hard to find enough qualified employees, but virtually any employee, Hirschi noted.
"There's no question that employers have had to pay more, probably 6 to 10 percent increase in wages over the last 12 to 18 months," he said. "The challenge that employers are having to one degree or another is good news for employees. Employees are much more in the driver's seat right now."


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